Mike Rowe, Director of Realmark Commercial shares his professional advice from decades of experience and some ‘quick wins’ that may be looming for Perth investors at this time.
“We would suggest starting by looking at your current portfolio to ensure you’re capitilising on the current market conditions and where you can, secure better terms with your tenant. Also consider whether a change of use in an option. Certain asset classes such as medical often attract higher values.
“For some investors, it may be an opportunistic time to acquire new property to add to your portfolio. During this phase of the market cycle, it’s pertinent you work with your commercial property agency to identify smart purchases that are aligned with your aspirations and that will set you up for long-term success,” said Mr Rowe.
Opportunities to also potentially look out for are premises with upcoming expiring leases.
“Expiring tenancies often put investors off, however in our experience there can be a golden egg.
“In most cases, tenants generally want to stay where they are, and provided the chance to review the terms and establish a relationship with a new agreement – there may potential for higher returns and / or terms that are aligned with your investment goals.
There is also the option to enhance your space to appeal to a wider market, or a tenant who is willing to pay more to secure your property.
“Upgrading, renovating and new fit outs are other ways to increase rent and ultimately, return. Bringing your commercial premises into the times will open doors to new tenants - particularly in the office space where the fit out as it’s leased is important to the business,” said Mike.
“If upgrading or renovating isn’t suitable, there’s always the option (subject to council approval) to simply add more. This could range from adding additional car bays, to expanding the floor area overall – both could add to your property’s leasing value potential.”
Mike advised that it’s important when making renovations or additions, to think in line with your tenant’s or your potential tenant’s needs.
Realmark Commercial has leased, sold and managed commercial property in Perth for over 30 years. If you’re looking for advice on what property to acquire, need help in maximising the sale or leasing of your property/s, or could benefit from assistance in managing your commercial portfolio for maximum return, get in touch with Mike Rowe on 0408 470 074 or at mrowe@realmark.com.au.
This information is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial advisor.